What does ACO stand for, and what is its defining model?

• A. An organization representing patient advocacy groups.
• B. A type of data encryption.
• C. A healthcare organization characterized by a payment and care delivery model that ties reimbursements to quality metrics and reductions in total cost of care for an assigned population of patients.
• D. A term for high-speed internet connection.

Answer: (C)

Accountable Care Organization refers to a group of providers—such as doctors, hospitals, and other health professionals—who come together to take responsibility for the quality and total cost of care for a defined group of patients. The defining model is a payment and care delivery approach that ties reimbursements to performance on quality metrics and to achieving reductions in the total cost of care for that assigned population. By coordinating care, emphasizing preventive services and efficient management of chronic conditions, ACOs aim to improve outcomes while lowering spending. If cost targets are met or exceeded with quality benchmarks, providers can share in savings with the payer; some arrangements may involve sharing risk if costs exceed targets. This concept is distinct from patient advocacy organizations, data encryption, or high‑speed internet terminology.